The role of carbon taxes in reducing CO2 emissions is discussed. It is suggested that since the link between economic growth and energy consumption has been severed, a reduction of CO2 emissions in the Western World could be achieved very easily through energy efficiency measures. Current emission levels, trends and the uncertain nature of the problem are discussed. The level of carbon tax required to make an impact on emissions is examined. The possibility of a 60% reduction in emissions in 50 years is put forward. With a carbon tax starting at 40 dollars per tonne rising to 650 dollars per tonne in 15 years, the reduction in emissions would come mainly from investment in renewables, energy saving, changes in regulations, improvements in standards, and changes in lifestyle. A diagram is provided which shows the effects upon carbon dioxide emissions of the proposed carbon tax. The emissions are divided by the sector producing them, one of which is transport.
Abstract